The following information relates to Shea Inc.'s Accounts Receivable for the 2014 fiscal year: 1. An aging
Question:
1. An aging schedule of the accounts receivable as at December 31, 2014, is as follows:
2. The Accounts Receivable control account has a debit balance of $372,400 on December 31, 2014.
3. Two entries were made in the Bad Debts Expense account during the year: (1) a debit on December 31 for the amount credited to Allowance for Doubtful Accounts, and (2) a credit for $2,740 on November 3, 2014, and a debit to Allowance for Doubtful Accounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as follows for 2014:
5. There is a credit balance in Accounts Receivable (61-90 days) of $4,840, which represents an advance on a sales contract.
Instructions
Assuming that the books have not been closed for 2014, make the necessary correcting entries.
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,